Statistics Canada released retail sales data on Friday. Canadian retail sales dropped by 2.2% in December, missing expectations for a 0.6% fall, after a 1.7% increase in November.
The decline was mainly driven by lower sales at motor vehicle and parts dealers, which slid by 3.9% in December.
Sales at gasoline stations declined 1.1% in December, while sales at food and beverage stores were down 1.2%.
Motor vehicle and parts sales increased 3.5% in November, while sales at furniture and home furnishings stores rose 0.5%.
Canadian retail sales excluding automobiles declined 1.6% in December, missing expectations for a 0.5% decline, after a 1.0% rise in November. November's figure was revised down from a 1.1% gain.